BROKERAGE ACCOUNT (SDBA)
What is a self directed brokerage account?
The ability to ‘self-direct’ investments in company employer plans is becoming increasingly popular today.
A Self-Directed Brokerage Account (SDBA), is a window inside a company-sponsored retirement plan (401(k), 403(b), 457, etc.) which offers plan participants investment options outside of the limited pre-selected company choices.
Access to professional money management and additional investment options allows investors to seek portfolio growth through strategies not commonly available to standard plans. Investors have access to portfolio integration methodologies that seek to maximize returns and mitigate risks.
How does it work for participants?
Company plans that offer a SDBA allow any plan participant the ability to move their assets, tax- and penalty-free, into a brokerage account and choose from a larger selection of investment choices.
Assets remain in the retirement plan; they are not rolled over and there is no taxable event.
Introducing tactical management and what it can do for a SDBA participant.
Tactical management uses math and science algorithms to track market movements and trends, and removes the emotions from the investing process. Markets are, by their nature, volatile. That volatility deters investors from making rational decisions with their investments and hinders long-term investment goals and returns. Portfolios are designed to capture upward movements and reduce declines.
How can risk management aim to prevent major loss during a market downturn?
Missing the worst days of the market could save investors more than they think; it could save years of catching up. Through fiduciary investment advice and stop loss risk management, we have partnered with Howard Capital Management, to manage participant assets in the account based upon risk-tolerance. The portfolio is adjusted on an as-needed basis. This process removes emotion from the investing process and serves to help participants maximize their retirement goals.